Thursday, 13 June 2013
Dow Jones
Dow Jones is an index that 30 large publicly owned companies based in the United States have traded during a standard trading session in the stock market.It is the second oldest U.S. market index after the Dow Jones Transportation Average.The Dow Jones Industrial Average also called the Industrial Average, the Dow Jones, the Dow Jones Industrial, the Dow 30, or simply the Dow, is a stock market index, and one of several indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow. It was founded on May 26, 1896, and is now owned by Dow Jones Indexes, which has its majority owned by the CME Group.The index was created to measure the performance of the industrial sector of the American stock market. Dow Jones Transportation Average was also created by Dow
The Industrial portion of the name is largely historical, as many of the modern 30 components.Its have little or nothing to do with traditional heavy industry. The average is price-weighted, and to compensate for the effects of stock splits and other adjustments, it is currently a scaled average. The value of the Dow is not the actual average of the prices of its component stocks, but rather the sum of the component prices divided by a divisor, which changes whenever one of the component stocks has a stock split or stock dividend, so as to generate a consistent value for the index.
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